Correlation Between Yingde Greatchem and Air China
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Air China Ltd, you can compare the effects of market volatilities on Yingde Greatchem and Air China and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Yingde Greatchem with a short position of Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Air China.
Diversification Opportunities for Yingde Greatchem and Air China
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yingde and Air is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China and Yingde Greatchem is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Yingde Greatchem Chemicals are associated (or correlated) with Air China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air China has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Air China go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Air China
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to under-perform the Air China. In addition to that, Yingde Greatchem is 1.81 times more volatile than Air China Ltd. It trades about -0.02 of its total potential returns per unit of risk. Air China Ltd is currently generating about -0.03 per unit of volatility. If you would invest 1,174 in Air China Ltd on September 3, 2024 and sell it today you would lose (346.00) from holding Air China Ltd or give up 29.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 73.17% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Air China Ltd
Performance |
| Timeline |
| Yingde Greatchem Che |
| Air China |
Yingde Greatchem and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Air China
The main advantage of trading using opposite Yingde Greatchem and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Air China can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Air China will offset losses from the drop in Air China's long position.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Hoshine Silicon Ind |
| Air China vs. Cultural Investment Holdings | Air China vs. Gome Telecom Equipment | Air China vs. Bus Online Co | Air China vs. Holitech Technology Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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